7-11 operator sets P650M for capex

By Honey Madrilejos-Reyes

PHILIPPINE Seven Corp. (PSC), operator of the country’s largest convenience store chain 7-Eleven, is allotting P650 million this year for capital expenditure to support its expansion program.

At the sidelines of its annual stockholders’ meeting Thursday, president and chief executive Victor Paterno said they plan to end the year with 400 stores from only 211 last year.

The new stores will be located in areas like near business process outsourcing buildings and plazas, seen viable for their convenience store’s operations.

“We will support our capex mostly through internal cash. We will also draw down from an available credit line,” he said.

PSC posted positive results last year with a net income of P54 million from P22 million a year earlier. Revenues also grew 7 percent to P4.9 billion.

This year, while he admits that growth will be affected by the global economic slowdown, the company is optimistic to still post positive results as it will be implementing improvements in food service and value-oriented offerings.

As of end June, he said its net profit grew by 20 percent although sales was flat.

7-Eleven derives its revenues principally from retail sales of merchandise, commission on services and franchising activities. Its primary expenses consist of cost of goods, operating, selling, general and administrative expenses, interest expense and income taxes.

Listed PSC is majority-owned by Taiwan-based investment holding firm President Chain Store (Labuan) Holdings Ltd. with 56.6 percent. The remaining 43.4 percent is publicly owned.

The company acquired from Southland Corp. (now 7-Eleven Inc.) of Dallas, Texas the license to operate 7-Eleven stores in the Philippines in December 13, 1982. Operations commenced with the opening of its first store in February 29, 1984 at the corner of Kamias Road and EDSA in Quezon City.

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7-11 operator sets P650M for capex

PHILIPPINE Seven Corp. (PSC), operator of the country’s largest convenience store chain 7-Eleven, is allotting P650 million this year for capital expenditure to support its expansion program.

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